Final Expense: A Policy For Everyone

What if you are retired or nearing retirement and you do not have life insurance? You may think that you will no longer qualify, due to age or health. However, this is not necessarily the case. Final expense insurance is a form of life insurance that requires little or no underwriting, which means almost anyone can qualify. Policies are available in face amounts typically ranging from several thousand dollars up to a maximum of $25,000-$50,000—much less than a standard life insurance policy. This is because these policies are only intended to cover final expenses and small legacy wishes; they are not meant to address longer-range expenses like ongoing living costs or college and retirement funding.

Final expense insurance typically comes in two varieties. The first type is the immediate full benefit policy, which is generally available to people with no serious health concerns. This type of policy pays the full face value to the beneficiaries immediately upon the insured’s death, even if the policy has only just been bought. The second type of final expense insurance is the graded benefit policy, which is available to people with serious health concerns. This type of policy provides the insured with limited or no benefits during the first few years, but will pay 100% of the death benefit after the policy has been in place for a specified number of years. If the insured dies before the time has elapsed, then the beneficiary will still receive a return of premiums.

These policies can provide the peace of mind, knowing that your survivors will not be left struggling to pay for your funeral or with outstanding medical bills or debts. To find out more about these life insurance products and to inquire about coverage, call your local PRCUA agent or the home office.


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